difference between self help groups and individual loans
Answers
.......>>>>>The main difference between cooperatives and Self help Groups is that cooperatives are a group of Professionals usually belonging to same profession like farming. While self help Groups are the groups of rural women who belong to different occupations, they may be house maids, labourers etc.
• The resources pooled in cooperatives is large and of high value while the in SHGs the collection is small made from the wages of the poor women.
• The pooled resources in cooperatives are used in their industrial purpose like setting up a dal mill, sugar Mill etc or The resources are submitted in banks as collateral to avail for large loans. While the SHGs, as discussed above use the money to give loans to it's members for repairing their houses, generate self employment opportunities like tailoring, for releasing mortgaged land etc.
• Cooperative societies are formed so that these people can pool their resources, generate huge profits and share it among themselves and increase their incomes while SHGs are formed in places where banks are not easily available.